Understanding Credit Scores

Credit Scores indicate Risk Levels to Lenders

There are 2 separate credit score reporting agencies in Canada.

Equifax and Transunion are private companies and are the sources for which lenders determine the worthiness of your credit.
Equifax & Transunion Credit Scores are measured with an numberical range of 280 to 850, where the higher score indicates a reduce risk to lenders.
There is also credit score called FICO Score, this scoring is specifically designed for US lenders and not particularly relevant in Canada.

Credit Score

Borrower Rating – Lender Risk Level

Borrowing Outcome

300-400

Bad Credit – Very High

Suitable for only High risk lenders, lenders will demand unsustainably high rates of interest